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History
Kremikovtzi Corp. is the biggest
steelmaking companies on the Balkan Peninsula. Its majority owner is
the company Finmetals Holdings Corp. that was bought by Global Steel
Holding Limited in August 2005. It has 71% of the issued joint-stock
capital of the company while the state in the person of the Ministry
of Economy and Energy maintains a minority stake of 25.29%. The
company was founded in 1959 as Iron-and-steel works Kremikovtzi. The
construction of the production powers started on 05.11.1960.
During the period of planned economy the initial objective of
the works has been to contribute to the industrial development of
Bulgaria by building and development of the ferrous metallurgy in
the country. A good prerequisite has been the use of the available
local iron ore deposits (Fe content of 29-37%) which has been the
main reason for the selection of the works location.
The first production facilities were started in 1963. In the
following 15 years additional installations were built, thus
creating a vertically integrated structure, covering the full
process from iron ore extraction to the production of finished steel
products, as well as all the necessary auxiliary activities.
After The Trade Act was passed in Bulgaria Kremikovtzi was
registered as a joint-stock company of initial capital of 720 363
000 BGN split in 720 363 shares each of nominal value of 1 000 BGN.
Subsequently, this capital was increased in December 1995 to 18
520 995 000 BGN (18 520 995 shares) after the revaluation of the
fixed assets in accordance with State Decree No 179.
After the hyperinflation of 1997 the fixed assets were
revaluated once again to 296 998 266 000 BGN which was achieved
rather by changes in the reserve of the revaluation than by issuing
of new capital.
During the process of mass privatization in 1996 and 1997 3.71%
of the shares of the company were purchased by private investors.
These shares were listed at the Bulgarian Stock Exchange.
On 19.06.1999 the privatization contract of 71% of the shares
of the company was signed with Finmetals Holding Corp. In August
2005 Global Steel Holding Limited acquired the majority stake of
Finmetals Holding Corp. in Kremikovtzi Corp.
In May 2006 The EU Commission appointed the independent
consulting company IDOM to make an assessment of what was
implemented under the Individual viability plan of Kremikovtzi Corp.
The plan was approved by the EU and developed by Eurostrategy
Consultants in 2003.
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